Summaries of health policy coverage from major news organizations

Insurer Mega-Mergers To Be Challenged By Justice Department On Antitrust Concerns

Lawsuits are expected to be filed this week to block the proposed Anthem-Cigna and Aetna-Humana acquisitions, according to news reports.

Bloomberg:
U.S. Said Readying Suits Against Anthem, Aetna Insurer Deals
U.S. antitrust officials are poised to file lawsuits to block Anthem Inc.’s takeover of rival health-insurer Cigna Corp. and Aetna Inc.’s deal to buy Humana Inc., according to a person familiar with the matter.
Justice Department officials, who are responsible for protecting competition, are concerned that the deals, which would transform the health-insurance industry by turning its five biggest companies into three, would harm customers, according to several people familiar with the situation. While the companies may offer to sell assets to gain approval for the deals, that’s unlikely to sway antitrust officials, one of the people said. (McLaughlin and Forden, 7/19)

New York Times:
Justice Dept. Will Seek To Block 2 Health Insurance Mergers
The proposed mergers would greatly reshape the health insurance landscape. The combination of Anthem with Cigna would create a powerful presence in the market to offer insurance administration to large employers. And Aetna’s combination with Humana threatened to further consolidate the market for private Medicare plans. (Picker and Abelson, 7/19)

Modern Healthcare:
Aetna, Anthem Mega-Deals Appear Headed For Trouble
Antitrust observers and financial analysts have increasingly viewed the Anthem-Cigna deal as more difficult to complete because it would create a highly concentrated market for employer coverage. It's also unclear how Anthem would resolve issues with the Blue Cross and Blue Shield Association. [Analyst Ira] Gorsky believes Aetna's transaction with Humana is more likely to withstand federal pushback, as long as the insurer can prove selling some Medicare Advantage assets to another buyer appeases anti-competitive concerns. (Herman, 7/19)

Reuters:
U.S. Antitrust Officials Set To Challenge Anthem, Aetna Deals: Source
Leerink Partners analyst Ana Gupte said in a research note that she expects the companies to fight the Department of Justice, but that Anthem's and Cigna's chances of success were slim. Indeed, a source familiar with the situation told Reuters earlier this month that Aetna was prepared to fight the Justice Department. (Humer, 7/19)

Harford Courant:
Stocks Slide For Insurance Companies Amid Report U.S. DOJ Readying Suits
A eport that the U.S. Department of Justice is readying legal challenges to sweeping insurance industry acquisitions involving Aetna and Cigna sparked a strong reaction from Wall Street and little comment from the companies involved. The report ... sent shares tumbling as investors speculated whether federal regulators would block the proposed $54 billion purchase of Cigna by Anthem and the proposed $37 billion acquisition of Humana by Aetna. (Singer and Blair, 7/19)